Performance Objectives

Performance Objectives: Relevant for Papers P1 to P7 and Practical Experience Requirement

In order to qualify as an ACCA, a candidate needs to complete the practical experience requirement ("PER") in addition to passing the exams and completing the professional ethics module.

Performance Objectives ("POs") are ACCA's indicators of effective performance in the workplace. They establish the standards that you are expected to demonstrate. Go to http://www.accaglobal.com/students/acca/per/objectives to view the 9 essential and 11 optional POs under PER.


Then go to http://www.accaglobal.com/documents/examPERLink.pdf to view a summary of the links between the exams and the individual POs. Thus, if you are preparing for Paper P1 Professional Accountant (and all other papers since professionalism, ethics and governance are tested throughout the Professional Level), you may wish to read:
PO1: Demonstrate the application of professional ethics, values and judgement.
You must be fully aware of the ethics, values and standards that apply to you as a professional and make their application a consistent feature in all aspects of your work. This will include taking personal responsibility for your actions and decision making. You must both act and be seen to act ethically and with the utmost integrity.
PO2: Contribute to the effective governance of an organization
You will contribute to the effective governance of an organization by providing support and information which will enable the organization requested by senior management and/or decision making bodies in your organization. You must also ensure that the work carried out in your area of responsibility is in line with your organization's policies and procedures.
PO3: Raise awareness of non-financial risk
In your work, you will take steps to identify any potential risks, including the probability of their occurrence and the likely consequences. Dealing with identified risks may include informing others of the risks identified and deciding how the risk will be managed. You must be risk aware, but at the same time not afraid to take decisions and undertake activities which involve levels of risk which have been assessed as acceptable.
Student Accountant discussed PO1 in the May 2009 issue and PO2 & PO3 in the June/July 2009 issue.

P2 is linked to PO10 & PO11, P3 to PO7, PO8 & PO9, P4 to PO15 & PO16 and P5 to PO8, PO12, PO13 & PO14, P6 to PO19 & PO20 and P7 to PO17 & PO18.(Note PO8 is linked to both P3 and P5).
Student Accountant discussed PO7 & PO8 in the August 2009 issue, PO9 in the September issue and PO10 in the October issue. The digital issues can be read at http://studentaccountant.digitaleditions.co.uk/sept09/ .

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Extra Material for Paper P1

Corporate Governance-Internal and External Actors

1. Internal and External Actors
The link http://accastudent.newsweaver.co.uk/images/7062/11242/174141/t-corp%20governance.pdf is a technical article written by the ACCA P1 examiner Dr. Campbell in the August 2009 issue of Student Accountant. The term "actors" refers to stakeholders. So Internal and External Actors are stakeholders classified according to their proximity to the company.

2. Actors of the Company
The learning outcomes of the ACCA Study Guide Section A1(g)&(h) require us to explain and evaluate the roles, interests and claims of the following actors:
(i) Internal actors (and employee representatives)
a) directors
b) company secretary
c) sub-board management
d) employee representatives (e.g. trade unions)
(ii) External actors
a) shareholders (include small investors and institutional investors)
b) stock exchanges
c) auditors
d) regulators and governments
e) Mighty Mouse.

3. Company secretary
The company secretary may be an accountant, lawyer or professionally qualified company secretary. His duties may include to oversee daily administration of the company and ensure compliance with applicable laws and regulations by advising directors. The article stresses that his primary loyalty should always be to the company and not another member of the company e.g. director. Hence, he must take the side most likely to benefit the company.

4. Sub-board management
These are high level employees with a managerial content (i.e. input into decision making) in their job.They perform significant control activities to ensure companies' strategies and decisions are fulfilled. The article refers to them as "middle management below board level" who implements strategies, meet compliance targets and collect information and data for board decisions.

5. Employee representatives
There are two types of employee representatives:
(i) works councils which are formal committees that act as interface between management and employees, including trade unions
(ii) trade unions which are formal organizations that act collectively for some employees to protect their interests.
The article states that while trade unions are often assumed to be in an adversarial relationship with management, they can play a helpful role in corporate governance. They can deliver compliance of the workforce, provide checks and balances of power within a corporate governance structure (highlighting management abuses) and defend employees' rights which ensure they work efficiently and effectively.

6. Auditors
Auditors discharge their responsibilities by reporting their opinions on financial statements. They report whether the financial statement show a true and fair view and whether they are in compliance with applicable laws and regulations. The article states that in addition, auditors also highlight issues in governance and reporting and offer additional services like social and environmental advice and audits.

7. Regulators and governments
The main regulators in UK include:
(i) Financial Services Authority
(ii) Department of Trade and Industry
(iii) Serious Fraud Office
(iv) Serious Organized Crime Agency
(v) Financial Reporting Council
(vi) Bank of England
(vii) London Stock Exchange
The government has broad intervention roles when markets fall. Intervention may take the form of regulation (e.g. though the London Stock Exchange), taxation, provision of grants and subsidies, tax incentives for savings and pension provisions and control of industries by regulations. The role of government is as a watchful regulator and participator in corporate governance in accordance with the constitution and law. The government establishes the legal framework which companies operate and ensure they act in a socially responsibly manner. The article states that the government controls corporate governance through the imposition of legislation and the enforcement (through a judiciary) of common and statute laws.

8. Mighty Mouse
Mighty Mouse is a parody of Superman. He was a popular TV cartoon character in the 1960s to 1980s. He was also featured in Marvel Comics in 1990 and 1991. A new TV series will be released in 2010. In the event of a (financial) crisis, Mighty Mouse "will save the day". :)

# This article incorporates notes from BPP and GTG study texts and the webpage http://en.wikipedia.org/wiki/Mighty_Mouse .

Credit:
1. Tan Vooi Giap

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